Question 1

Can I use a Bank Statement Loan to buy a rental in Palo Alto?

Accepted Answer

Yes. Bank Statement Loans work on investment properties. DSCR is just a simpler path when the rental income covers the payment.

Question 2

What DSCR ratio do lenders typically require?

Accepted Answer

Most lenders want a ratio of 1.0 or higher. That means monthly rent at least equals the full mortgage payment.

Question 3

Do I need perfect credit for these loans?

Accepted Answer

No, but credit still matters. Non-QM lenders typically want a 620–680 minimum. Higher scores get better pricing.

Question 4

Can an LLC take out a DSCR Loan?

Accepted Answer

Yes. Many DSCR lenders lend directly to LLCs. That's a common structure for investors building a rental portfolio.

Question 5

Which loan closes faster?

Accepted Answer

DSCR Loans often close faster. There's less personal documentation to collect and underwrite. Bank Statement Loans take longer to analyze.

Question 6

Can I have both a Bank Statement and a DSCR loan at the same time?

Accepted Answer

Yes. They serve different purposes. We see investors use Bank Statement for their primary home and DSCR for their rentals.

Bank Statement vs DSCR Loans in Palo Alto